The US dollar held on to gains against most currencies on Wednesday as renewed questions about a Covid-19 vaccine and lack of an agreement on additional US fiscal stimulus prompted a shift to safer assets.
The yuan was little changed versus the dollar after the central bank’s daily fixing of the yuan’s mid-point was largely in line with estimates, suggesting authorities have paused their attempts to rein in the currency. The euro and British pound are likely to extend declines, analysts said, as a return of restrictions on economic activity in Europe and Britain to battle a second wave of Covid-19 infections unnerves investors.
Currency moves, however, are likely to be subdued as the US presidential election looms on November 3, but analysts said sentiment is leaning against riskier bets, which should support the dollar in the coming days. “Many factors are pointing to more upside for the dollar,” said